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June 2011

(2011) 22 STR 252 (Tri.-Ahmd.) — Bock India Pvt. Ltd. v. CCEx, Vadodara

By Puloma Dalal
Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Refund of pre-deposit on a favourable decision suo motu credit taken by appellants under intimation to Revenue — No objection can be raised by Revenue — Appeal allowed.

Facts:
The appellants had deposited an amount of Rs.40,000 in terms of stay order passed by the Tribunal. At a later stage, the same was refundable to them as the order was passed in favour of the appellants. Consequently, the appellants took the credit suo motu by intimating the Revenue.

However, proceedings were initiated against the appellants on the argument that they should have applied for refund instead of taking credit suo moto. As a result, penalty of Rs.5,000 in addition to the amount mentioned supra was confirmed against the appellants.

Held:
Refund of pre-deposit accrued to the appellants immediately on passing of the Tribunal’s order allowing the appeal. It was held that Revenue cannot raise any objection for granting of Cenvat credit since the same was intimated to the Revenue and provisions of unjust enrichment do not apply to such refund of pre-deposit. Hence, appeal was allowed in favour of the appellants.

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